Over the past five years (some say almost a decade), there has been a revolution in the intelligence community toward wide-scale outsourcing. Private companies now perform key intelligence-agency functions, to the tune, I'm told, of more than $42 billion a year. Intelligence professionals tell me that more than 50 percent of the National Clandestine Service (NCS) -- the heart, brains and soul of the CIA -- has been outsourced to private firms such as Abraxas, Booz Allen Hamilton, Lockheed Martin and Raytheon.

These firms recruit spies, create non-official cover identities and control the movements of CIA case officers. They also provide case officers and watch officers at crisis centers and regional desk officers who control clandestine operations worldwide. As the Los Angeles Times first reported last October, more than half the workforce in two key CIA stations in the fight against terrorism -- Baghdad and Islamabad, Pakistan -- is made up of industrial contractors, or "green badgers," in CIA parlance.

Intelligence insiders say that entire branches of the NCS have been outsourced to private industry. These branches are still managed by U.S. government employees ("blue badgers") who are accountable to the agency's chain of command. But beneath them, insiders say, is a supervisory structure that's controlled entirely by contractors; in some cases, green badgers are managing green badgers from other corporations.

Imagine all the potential for double loyalty etc ...

Lockheed employees payed by the CIA detecting a secret Chinese weapon threat that requires to buy the Air Force more Lockheed F-22 fighters to combat it ...

In his Presidential address to the American Society of Criminology, William Chambliss raised the issue of what he called "State-Organized Crime" (Chambliss, 1988). Chambliss defined state-organized crime as "acts committed by state or government officials in the pursuit of their job as representatives of the government" (Chambliss, 1988: 327). In Chambliss' view governments often engage in smuggling (arms and drugs), assassination conspiracies, terrorist acts, and other crimes in order to further their foreign policy objectives. While these actions may be seen as having immediate benefits (despite their illegality), they often have unanticipated and unintended outcomes, sometimes referred to in intelligence circles as "blowback." In this section we will examine the issue of state- organized crime as it relates to the United States and some of the "blowback" which law enforcement agencies have had to cope with as a result of these state-organized crime activities.

When governments commit acts that are defined by their own laws as criminal or when government officials break the law as part of their job, they engage in state-organized crime (Chambliss, 1986). While the state rarely makes public its criminality or keeps tabulations on the number of illegal acts it has committed, it is clear from both a historical and contemporary perspective that state organized crime is neither new nor rare. State-organized crime is particularly apparent in the covert operations of intelligence agencies.

"America was never innocent. We popped our cherry on the boat over and looked back with no regrets. You can't ascribe our fall from grace to any single event or set of circumstances. You can't lose what you lacked at conception.

"Mass-market nostalgia gets you hopped up for a past that never existed. Hagiography sanctifies shuck-and-jive politicians and reinvents their expedient gestures as moments of great moral weight. Our continuing narrative line is blurred past truth and hindsight. Only a reckless verisimilitude can set that line straight."